Being a trades worker is a common occupation in Australia. According to the Australia Bureau of Statistics, approximately 14% of the country’s workforce in August 2011 are trade workers. As most trades workers in Adelaide are often busy with building projects, many struggle with staying on top of their tax obligations. To avoid tax penalties, some consult and hire Adelaide business accountants specialising on taxes.
Take the first step to running your small business effectively. Here are some tips on managing your taxes:
Managing Tax Obligations
Due to the demands of the job, many trades workers often miss their tax obligations. This will affect the cash flow of your business, which may lead to grave consequences. Some fail to compute their taxes properly and end up paying more than they should. Hiring a licensed Adelaide tax accountant will help you get your taxes straightened out. You can continue managing your business without constantly worrying about missing tax deadlines and paying penalty fees.
Using a Tax Software
Trades workers, such as builders, electricians, and carpenters, use tax programs to compute their taxes. While this is great, some buy costly software with features they don’t really need for their business. Using complicated software puts you at higher risk of getting wrong tax computations. Furthermore, a pricey tax program isn’t a practical choice, especially for those who are just starting in the field.
Think about consulting accounting experts when planning to use tax software. These professionals know the features you need and can explain complicated terms you may encounter when using the program. Those who don’t want to use a tax program may benefit from online accounting services. Just make sure you use a reliable service for your business.
Understanding the Simplified Tax System
One of the ways to reduce your taxes is to benefit from the Simplified Tax System. This system allows self-employed trades workers to write off their tools to as much as $1,000 in the same year that you bought your equipment. When you’re working for a company, you may still deduct your tools if they cost less than $300.
Avoid tax penalties and start paying your taxes on time with the help of certified accountants. Consult an expert to learn more about taxes, breaks, and software you can use to compute for your dues.